Fed Unlikely to Order Huge U.S. Banks to Droop Dividends

U.S. banks will probably be allowed to maintain paying dividends to shareholders, in accordance with folks accustomed to the matter, even because the coronavirus pandemic threatens to create a mountain of unhealthy loans that would ultimately weaken the lenders.

Some former U.S. regulators have mentioned the Federal Reserve ought to order the biggest banks to droop payouts to protect capital at a time of hovering unemployment and enterprise disruption that will eclipse the 2008 monetary disaster.